Important F A Q & ExternaL Terms

Computer business rules refer to the guidelines and constraints that govern the operations and decision-making processes within a computer system or organization. These rules aim to ensure efficiency, consistency, and accuracy in various aspects, such as:

1. Data management and processing
2. User access and authentication
3. Network and system security
4. Software development and maintenance
5. Hardware management and deployment
6. IT service management
7. Compliance with regulations and standards
8. Business continuity and disaster recovery
9. Customer relationship management
10. Financial management and accounting

Examples of computer business rules include:

- Password policies for user authentication
- Data backup and retention schedules
- Access controls for sensitive data and systems
- Software update and patch management procedures
- Incident response and troubleshooting guidelines
- Network segmentation and security protocols
- IT asset management and inventory tracking
- Customer support and service level agreements (SLAs)

By establishing and enforcing computer business rules, organizations can streamline operations, reduce errors, and improve overall efficiency and productivity.

Computer business rules and regulations vary by region, but here are some common ones:

1. *Data Protection*: GDPR (EU), CCPA (California), PDPA (Singapore), etc.
2. *Privacy*: Privacy Act (Australia), PIPEDA (Canada), etc.
3. *Cybersecurity*: NIST (US), Cybersecurity Act (Singapore), etc.
4. *Intellectual able Property*: Copyright laws, Trademark laws, Patent laws
5. *E-commerce*: Consumer Protection laws, Distance Selling Regulations
6. *Software Licensing*: Licensing agreements, Terms and Conditions
7. *Data Breach Notification*: Mandatory reporting of data breaches
8. *Online Content*: Regulations on online content, hate speech, and harassment
9. *Digital Signatures*: Electronic Signatures in Global and National Commerce Act (US)
10. *Environmental*: WEEE (Waste Electrical and Electronic Equipment) directive (EU)
11. *Export Control*: Regulations on exporting computer products and technology
12. *Taxation*: VAT, GST, Sales Tax, etc.
13. *Consumer Rights*: Consumer Protection laws, Return and Refund policies
14. *Online Gambling*: Regulations on online gambling, betting, and gaming

These rules and regulations aim to protect consumers, businesses, and society as a whole. It's essential to stay informed and comply with the relevant regulations for your computer business.

Let me know if you have any specific questions or need further information!

The European Union has various rules and regulations governing the computer business sector, including ¹ ² ³ ⁴:

- *Company Law*: EU company law rules cover issues such as the formation, capital, and disclosure requirements, and operations (mergers, divisions) of companies.
- *Digital Company Law*: Directive 2017/1132 relates to certain aspects of company law, and the proposal for a Directive aims to improve transparency and trust in the business environment in the single market.
- *Corporate Governance*: EU rules focus on relationships between a company’s management, board, shareholders, and other stakeholders, and therefore, on the ways the company is managed and controlled.
- *E-commerce*: E-commerce is rapidly evolving, and businesses are trying to adapt to these changes. If you are a business owner in the tourism industry, you should keep the legal aspects of e-commerce in mind when deciding to sell your services or products online.
- *Ecodesign Requirements*: Computers and small-scale servers sold in the EU are subject to ecodesign rules, as outlined in Regulation (EU) No 617/2013.

Here are some computer business rules and regulations in Europe ¹ ²:

- *Company Law*: EU company law rules cover issues such as the formation, capital, disclosure requirements, and operations (mergers, divisions) of companies.

- *Digital Company Law*: Directive 2017/1132 relates to certain aspects of company law, and the proposal for a Directive aims to improve transparency and trust in the business environment in the single market.

- *Data Protection*: The European Union’s groundbreaking new digital rules took effect Friday for the biggest platforms. The Digital Services Act is part of a suite of tech-focused regulations crafted by the 27-nation bloc — long a global leader in cracking down on tech giants.

- *Corporate Governance*: EU rules focus on relationships between a company’s management, board, shareholders, and other stakeholders, and therefore, on the ways the company is managed and controlled.

- *Cybersecurity*: The proposal for a Directive to further expand and upgrade the use of digital tools and processes in company law was adopted by the Commission on 29 March 2023. It aims to improve transparency and trust in the business environment in the single market, by making more information about companies publicly available and by ensuring that company information in business registers is reliable and up-to-date, and to reduce administrative burden when companies use company information from business registers in cross-border situations.

Here are the rules and regulations for a computer business in Singapore ¹:

- *Licensing Requirements for E-Retailers*: Internet content in Singapore is considered to be broadcast media content and therefore falls under the purview of the Singapore Broadcasting Authority (SBA). All licensable broadcasting services, including computer online services provided by Internet Service Providers (ISPs) and Internet Content Providers (ICPs) must be licensed.
- *Regulation of Internet Content*: All class licensees, including e-merchants, are legally bound to comply with the Internet Code of Practicethat prohibits the broadcast of materials that are considered objectionable on grounds of public morality, public order, public interest and public security or materials that are otherwise prohibited under Singapore law.
- *Regulation of Online Business Activities*: Depending on the type of products or services that you are offering online, you might be subject to the rules and regulations that currently apply to the physical provision of those goods and services.
- *Regulatory Framework for Web Contracts*: As an e-retailer, you should exercise caution while making any online promises or implied contracts because web contracts are bound by Singapore contract law.
- *Consumer Protection Legislation*: All e-retailers must take cognizance of certain provisions outlined in specific statutes that relate to protecting consumer rights.
- *Protection and Security of Digital Data*: The Computers Misuse Act protects computers, computer programs, and data that is stored in computers from unauthorized access, modification, interception and interference.
- *Intellectual Property Protection in Cyberspace*: The ease with which pictures, information, and data can be transferred across the Internet has created the need to protect IP rights in cyberspace.

Singapore has various regulations and laws that govern the computer business sector. Some key regulations include:

1. Personal Data Protection Act (PDPA): Governs the collection, use, and protection of personal data.
2. Info-communications Media Development Authority (IMDA) Regulations: Covers areas like cybersecurity, data storage, and online content.
3. Computer Misuse Act: Criminalizes unauthorized access, modification, or disruption of computer systems.
4. Electronic Transactions Act: Facilitates electronic contracts and signatures.
5. Copyright Act: Protects intellectual property rights in digital works.
6. Broadcasting (Class Licence) Notification: Regulates online broadcasting and content.
7. Telecommunications Act: Governs telecom services, including internet and data services.
8. Cybersecurity Act: Mandates cybersecurity measures for critical infrastructure.
9. Data Protection Trustmark (DPTM) Certification: Encourages organizations to adopt data protection best practices.
10. National Cybersecurity Strategy: Outlines Singapore's approach to cybersecurity.

These regulations aim to ensure a secure, efficient, and innovative computer business environment in Singapore. It's important to stay updated on the latest regulations and compliance requirements.

Let us know if you have any specific questions or need further information!
Business ModelBusiness to Consumer (B2C)Business to Business (B2B)Consumer to Consumer (C2C)Consumer to Business (C2B)DetailsA business selling goods or services directly to a consumer.A business selling goods or services to another business.A consumer selling goods or services to another consumer.A consumer selling goods or services to a business.ExampleA cafe selling coffee to a diner.A distributor selling coffee beans to a cafe.Someone selling a used coffee machine on social media.A freelance designer creating a cafe’s menu.

These eCommerce model are what we practise and could chane f4om time to time updqting clearly.

What are the relevant eCommerce laws and regulations in Singapore?

These laws and regulations fall under the The Electronic Transactions Act 2010. Additionally, it was amended in 2021 to adopt the UNCITRAL Model Law on Electronic Transferable Records. Finally, Singapore introduced the Guidelines for eCommerce Transactions in 2020 to enhance the transparency of online shopping here.



https://www.imda.gov.sg/regulations-and-licensing-listing/electronic-transactions-act-and-regulations


https://golocad.com/

E-commerce Laws and Regulations for Online Businesses in Singapore

• Locad Team

• January 26, 2023

Table of Contents

• Internet Code of Practice and Singapore Broadcasting Authority Act

• Electronic Transactions and Computer Use

• Misrepresentation and Sales Guidelines

• Card Payments and Data Security

• Trade Marks and Copyright

• Conclusion

• Experience fulfillment by LOCAD

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Over the years, Singapore’s e-commerce market has seen rapid growth, estimated to reach $9.8 billion by 2025.

As such, the Singapore government has put e-commerce laws and regulations into place to boost consumer and business confidence in online businesses.

In this article, we will look at some of the e-commerce laws and regulations, particularly for those thinking of starting an e-commerce business in Singapore. Most of these guidelines are interconnected and cover internet access, broadcasting, privacy, and electronic transactions, among others. We will also try to simplify the guidelines and ‘bundle” inter-related laws for clarity.

Internet Code of Practice and Singapore Broadcasting Authority Act

All online businesses in Singapore must comply with the country’s Internet Code of Practice (ICP). These are guidelines on the obligations of all internet service providers (ISPs) and internet content providers on which types of content, publications, or programs count as prohibited materials in the country. 

The Singapore Broadcasting Authority (SBA) Act meanwhile outlines what you’re allowed to broadcast on your website or whichever e-commerce platform you plan to use, and more importantly, Singapore’s licensing scheme for online merchants.

Depending on the type of e-commerce entity you’re setting up, you may also be required to acquire additional licenses. For example, for entities looking to sell secondhand goods, the Secondhand Goods Dealers Act 2007 mandates them to secure a specific permit aside from the class licenses that the SBA provides.

Electronic Transactions and Computer Use

As an online business, we expect to handle a lot of transactions electronically, mostly through web contracts. The Electronic Transactions Act 2010 facilitates the security and legality of electronic records, signatures, and contracts. This ensures that web contracts, along with signatures, documents, and records, are legally valid and recognized even if they are not in the usual paper form. 

Most of the time, all transactions within the e-commerce industry involve the collection of personal data from consumers. Online businesses will often have records of things like customer preferences and purchase history.

The Computer Misuse Act 1993 and Personal Data Protection Act (PDPA) 2012 work together by making provisions for the safeguarding of these kinds of information against unauthorized access. This means that online businesses are expected to have security measures such as data encryption and secure data storage that ensure there is no leakage of information on their end.

Misrepresentation and Sales Guidelines

In relation to the Electronic Transactions Act, the Misrepresentation Act 1967 protects consumers that may have entered contracts under false or misleading pretenses. Online businesses must know this to avoid misrepresentation in their web contracts and the possible damages that may follow. 

As with all businesses that deal with the sale of goods, e-retailers are also bound by the Sale of Goods Act (SOGA) 1979. The SOGA is a product liability law that also outlines contracts of sale, duties of both seller and buyer, product valuation, and warranties, among others. 

Under SOGA, all goods sold to a consumer must be of satisfactory quality. In addition to this, descriptions and samples made by the seller must match the actual quality of the goods. Any discrepancies between the description and the actual quality grant consumers the right to reject or return the goods. 

All online businesses that deal with the sale of goods are obligated to know and comply with these statutes. Note that as of writing, Singapore doesn’t have a single product liability law that governs services and goods in all sectors. Hence why there are also sector-specific product liability laws such as the Sale of Food Act 1973, Health Products Act 2007, and the Telecommunications Act 1999 to name a few.

Card Payments and Data Security

Along with the continuing growth of the e-commerce market, consumers are also leaning towards going cashless and using electronic payments or e-payment for their online purchases. 

If you’re planning to accept credit card payments for transactions under your business, ensure that you comply with the Payment Card Industry’s Data Security Standard (DSS). There are 12 requirements for PCI DSS compliance including the provision of secure authentication features and regular testing of security systems and processes. Under this standard, your online business is also forbidden to store or retain any credit card data such as credit card numbers and card verification values.

Compliance with PCI DSS establishes trust between sellers and consumers. It also prevents credit card fraud in case of any data breach.

AUTHORIED UNIQUE Business and Copyright

The internet has made it incredibly easy to share and transfer pictures, books, and other works across any online platform. Hence the establishment of Intellectual Property (IP) Laws to protect the rightful owners of these works. The Trade Marks Act 1998 and the Copyright Act 2021 in particular are IP laws that business owners should know.

A trademark is a distinct collective mark or certification mark — either a symbol, design, or words and phrases — that represents a business or the goods or services that they provide. It is a property right through trademark registration under the Trade Marks Act 1998. 

This Act covers the application for registration of a trademark, the registration procedure, as well as the rights and remedies of a trademark owner, and infringement proceedings. This law protects your business or brand’s identity. It gives you the right to take legal action against any entities that try to imitate your brand.

Copyright is the exclusive legal right to original works. Unlike trademarks, you don’t have to formally register or pay fees for your copyright. 

The Copyright Act 2021 lists down requirements you need for copyright protection, but in general, you are automatically granted your copyright the moment you create an original work. The Act also lists what these works are, the copyright owner’s rights, and what rights infringements entail.

In contrast, if you are planning to use a copyrighted work, you would need to acquire a license from the copyright owner. Make sure to avoid copyright infringement by only using works or creations that are your own or works that you have a license to use.

Running an e-commerce business can be a lot of work. Complying with the laws and regulations listed above, and possibly more, can also be a lot of work. But know that these provisions were set into place to protect not only the consumers but your business too.

Conclusion

It is indeed worthwhile to at least have a basic knowledge of Singapore’s e-commerce laws and guidelines, particularly if you plan to set up your own e-commerce business. However, it must be noted that the laws evolve, as e-commerce in Singapore continues to grow and also evolve.

 DECEMBER 2021

SINGAPORE

The State of E-commerce in Singapore

Singapore has a national standard of e-commerce transaction. According to Jun Meng Heng, Director at ZICO Insights Law LLC,

“in order to start an e-commerce business, you have to know the rules, advertising, marketing, the products that can be sold, and protection. If you are thinking of setting up your own e-commerce platform, you should consider the platform terms and conditions as well as the privacy policy.”

Governing legislation/ framework

There is no single/omnibus legislation on E-commerce activities in Singapore. Applicable laws that would apply include those in regards to consumer protection, sale of goods and services, trade description and personal data protection.

In June 2020, Enterprise Singapore and the Singapore Standards Council set out the first national standard for E-commerce transactions, Technical Reference 76 (“TR 76”).

Regulatory authority

The Infocomm Media Development Authority regulates Singapore’s infocomm and media sectors.

Licensing & market entry requirements

Generally, there are no restrictions on the types of E-commerce entities that could be set up in Singapore.

Internet Content Providers (“ICPs”) in Singapore are regulated by an automatic class licence pursuant to the Broadcasting (Class Licence) Notification. ICPs must comply with the Internet Code of Practice.

An E-commerce entity may be subject to additional licensing if it engages in certain activities (i.e., e-retailing of second hand goods).

Foreign equity restrictions

A foreign entity is not prohibited from setting up a company in Singapore. However, certain restrictions apply to foreign direct investment in particular sectors (i.e., media and broadcasting).

Payment solutions, foreign exchange administration and merchant acquiring services

• Payment solutions: Singapore’s mature E-commerce payment infrastructure has led to the availability of multiple forms (i.e., credit card, digital wallet, bank transfer) of payment solutions on E-commerce platforms.

• Foreign exchange administration: Since 1978, all exchange controls in Singapore have been abolished. Accordingly, local currency may be used for E-commerce platforms based outside Singapore.

• Merchant acquiring services: Providers of “merchant acquisition service” must be regulated under the Payment Services Act 2019 (“PSA”). The PSA defines “merchant acquisition service” to mean any service of accepting and processing a payment transaction for a merchant under a contract between the provider of the service and the merchant, which results in a transfer of money to the merchant pursuant to the payment transaction, regardless whether the provider of the service comes into possession of any money in respect of the payment transaction, in a case where – (a) the merchant carries on business in Singapore, or is incorporated, formed or registered in Singapore; or (b) the contract between the provider of the service and the merchant is entered into in Singapore.

Product liability

There is no single system of product liability law in Singapore.

Generally, the Sale of Goods Act (Cap. 393), Supply of Goods Act (Cap. 394), and Unfair Contract Terms Act (Cap. 396) work together by implying basic standard terms into contracts for the sale of goods – i.e., that goods are of satisfactory quality.

Consumers may also rely on the Consumer Protection (Fair Trading) Act (Cap. 52A), which protects consumers against unfair practices and gives consumers additional rights in respect of goods that do not conform to contract. Consumers will have a right of action against sellers that perform unfair practices (i.e., acts that deceive or mislead consumers).

Sector specific product liability laws include:

• Food & Beverage: The Sale of Food Act (Cap. 283) sets out minimum standards to ensure that food for sale is safe and suitable for human consumption.

• Medicines: The Health Products Act (Cap. 122D) regulates the manufacture, import, supply, presentation and advertisement of health products in Singapore. It comprises of standards for the formulation, composition, design specification, quality, safety, efficacy and presentation of health products.

Data protection

The Personal Data Protection Act 2012 (“PDPA”) regulates the collection, use and disclosure of personal data by organisations (including any individual, company, or body of persons, i.e., E-commerce websites).

E-commerce platforms are required to incorporate terms of the PDPA in their policies (i.e., user agreement / privacy policy). This includes, inter alia, that the organisation must:

• obtain the prior consent of the individual before the collection, use of, and disclosure of the personal data;

• use the personal data only for limited purposes of which the individual has been notified;

• provide the individual access to and correct errors in his personal data;

• protect personal data in its possession;

• cease to retain personal data when no longer necessary; and

• not transfer personal data outside of Singapore (except in accordance with the PDPA).

In addition, individuals may opt out of marketing messages addressed to their Singapore telephone number via the Do Not Call Registry.

Consumer protection

Pursuant to TR 76, e-marketplaces & e-retailers should ensure that relevant information relating to its organisation, its products and/or services, and the transaction is presented accurately.

Such information, inter alia, includes:

• legal name, registration number and place of registration;

• points of contact for any enquiry;

• safety and health-related concerns;

• guarantees and warranties, including the validity period of warranty;

• payment policies and delivery options; and

• after-sales services, refund policy, withdrawal and cancellation policy and returns and exchange policy.

Suppliers of controlled goods (as defined in the Consumer Protection (Safety Requirements) Regulations) registered with Enterprise Singapore must ensure that their goods are affixed with the SAFETY Mark before they are sold in Singapore



Enterprise Singapore and the Singapore Standards Council launched Technical Reference 76: the first-ever guidelines to set out a national standard for e-commerce transactions. The standard is aimed at boosting the digitalisation of SMEs, as well as the burgeoning e-commerce sector in Singapore.

Technical Reference 76 serves as a practical reference for e-retailers and online marketplaces. The guidelines cover a wide range of functions, from the pre-purchase activities of browsing and selection, to purchasing and payment processes, as well as post-purchase fulfilment, delivery, product tracking, returns, refunds and exchanges. They provide best practices for businesses looking to develop and implement the necessary operational procedures, customer support, merchant verification controls, as well as processes to ensure that consumer-facing communications are clear and enable customers to make informed choices.

The standard was formulated as an industry-led effort comprising representatives from the Consumers Association of Singapore, the Singapore Retailers Association, e-marketplaces including Carousell and Shopee, the e-retailer FortyTwo, Retail Studies, and payment and logistics service providers.

Technical Reference 76 can be purchased from the Singapore Standards e-shop at www.singaporestandardseshop.sg. To support SMEs’ efforts in combating COVID-19, the public will, for a limited time, be given free access to Technical Reference 76 and other selected international and Singapore standards at www.enterprisesg.gov.sg/standards-covid19



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